During its annual meeting on Dec. 10, Microsoft shareholders voted down a proposal to allocate a portion of the company’s balance sheet to Bitcoin. The resolution was introduced by the National Center for Public Policy Research (NCPPR), a Washington, D.C.-based pro-market think tank, which framed the move as a way to enhance shareholder value through diversified profits.
Shareholders’ Meeting Highlights
The NCPPR presented its case through a pre-recorded video shown at the meeting. The video began with the statement, “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave,” and included data and charts highlighting the potential benefits of adopting Bitcoin.
The proposal claimed that Bitcoin could generate substantial value and reduce risks for shareholders, urging Microsoft to allocate 1% to 5% of its profits to purchasing Bitcoin. It emphasized that institutional adoption of Bitcoin, such as BlackRock’s Bitcoin ETF, was gaining traction and called for Microsoft to assess whether Bitcoin adoption would serve shareholders’ long-term interests.
Board Recommends Against the Proposal
Microsoft’s board opposed the resolution in a filing with the U.S. Securities and Exchange Commission (SEC), labeling it “unnecessary.” The board highlighted concerns about Bitcoin’s volatility and stressed the importance of maintaining stable investments to ensure liquidity and operational funding.
The board stated, “Microsoft already has robust processes to manage and diversify its corporate treasury for the long-term benefit of shareholders, and this proposal does not align with those goals.”
FOMO-Driven Justifications?
The NCPPR’s arguments leaned heavily on avoiding the “fear of missing out” (FOMO), citing examples such as BlackRock’s Bitcoin ETF and MicroStrategy’s adoption of cryptocurrency. Despite these comparisons, Microsoft’s board maintained that the company’s existing financial strategies were adequate and that the proposal lacked justification.
In the end, shareholders sided with the board, voting against the resolution and opting not to include Bitcoin in Microsoft’s financial strategy.
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